CTM03948 - Small profits rate: financial year 2023 onwards: associated company definition: attribution to persons of rights and powers of their partners

CTA10/18G and SI 2022/1203, CTA10/451

In determining if a person or group of persons has control of a company, the rights and powers of a person’s nominees are attributed to that person.

The indirect rights and powers of a person’s associates held in separate companies are also attributed unless there is no substantial commercial interdependence between the companies concerned. Associates includes spouses & civil partners, blood relatives and trustees or settlors of trust beneficiaries (CTA10/S448).

The statutory rules are set out in CTA10/S18G and SI 2022/1203. The practical application of the rules will vary depending on the facts of each particular case.

CTM03949 gives more details.

If CTA10/S18G applies (i.e. where there is no substantial commercial interdependence between two companies) the only rights attributed to a person are those of:

  • their nominees (see CTM60140), and
  • any companies which the person controls or the person and their associates control together.